Free tool

Break-Even ROAS & CPA Calculator for Shopify

Find the ROAS and cost per sale your ads must beat before they make you money.

Free · No signup · Runs in your browser, nothing is saved or sent

Your numbers

$
per order (average order value)
$
per order
$
per order
%
% of the order
$
per order
%
% of orders
%
% of the order after ads

Your results

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These tools give estimates for planning, based on the numbers you enter. Fees, taxes and results vary by store, plan and country. This is not financial or tax advice.

In short

What does the Break-Even ROAS Calculator do?

Break-even ROAS is the return on ad spend at which your ads pay for themselves. It equals your selling price divided by what is left of each sale after product cost, shipping, fees and refunds. This calculator also gives your break-even CPA (the most you can pay for a sale) and the target ROAS you need to hit a profit margin you choose.

By Chyshabo, a Shopify-only agency · Updated

1. How to use this break-even roas calculator?

  1. 1Enter your average order value and the costs that come with each order, apart from ads.
  2. 2Read your break-even ROAS and break-even CPA. Any campaign below that ROAS loses money.
  3. 3Set your target margin to see the ROAS and CPA you need to make a real profit.

What each input means

Selling price
per order (average order value)
Product cost (COGS)
per order
Shipping cost you pay
per order
Payment processing fee
% of the order
Fixed payment fee
per order
Refund and chargeback rate
% of orders
Target net profit margin
% of the order after ads

2. How is the break-even roas calculator calculated?

  • Profit before ads = price − product cost − shipping − fees − refund loss
  • Break-even CPA = profit before ads
  • Break-even ROAS = price ÷ profit before ads
  • Target CPA = profit before ads − (target margin × price)
  • Target ROAS = price ÷ target CPA
Example

An order of $40 has $12 product cost, $4 shipping, $1.46 of payment fees and $1.20 of refund loss, which leaves $21.34 before ads. Your break-even CPA is $21.34 and your break-even ROAS is 1.87. To keep a 15% margin ($6.00 per order) you need a CPA of $15.34 or lower, which is a ROAS of 2.61.

3. Who should use this tool?

  • Store owners about to start Meta, TikTok or Google ads who need a number to judge campaigns against.
  • Owners with ads that look busy but are not profitable.
  • Anyone who has been told to “aim for 3x ROAS” without knowing if that fits their margins.
FAQ

Break-Even ROAS Calculator: frequently asked questions

What is ROAS?

ROAS stands for return on ad spend. It is the revenue an ad account generates divided by the money spent on ads. A ROAS of 2 means $2 of revenue for every $1 of ad spend.

Is a 3x ROAS good?

It depends entirely on your margins. If your break-even ROAS is 1.9, then 3x is profitable. If it is 3.2, then 3x loses money. That is why you should calculate your own break-even number.

What is the difference between ROAS and MER?

ROAS is measured per ad platform. MER (marketing efficiency ratio) divides total store revenue by total ad spend across all platforms, so it is less affected by attribution problems.

Why do refunds matter here?

A refunded order still cost you the ad spend and the shipping. Including a refund rate keeps your break-even number realistic.

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